BoE's King on the UK economy

In a speech given on 10 October Mervyn King of the Bank of England said the chance of inflation exceeding three percent in the coming months has been reduced by the latest fall in oil prices.

"The direct impact ... will be seen in CPI inflation over the coming months -- making it less likely that I will have to write an explanatory letter to the Chancellor than was the case two months ago," King told a business audience in Winchester.

He also said there was "great uncertainty" about the inflation

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